Investors are hopeful for the Republican hold on senate and Joe Biden as a president which will prevent changes and will also crumple corporate profits resulting in better performance of U.S stock on Thursday.
U.S. stock prices increased on Thursday as investors are more confident which results in taking the Wall street main index up for the fourth straight session, despite unclear outcomes of the elections.
S&P dropped 0.3% in the afternoon as Biden is getting closer to defeat President Trump.It would be more difficult to get the financial package through a hung senate as compared to democratic controlled Congress, according to the investors. That scenario can push the U.S Federal Reserve to issue more money to support equity prices.
On Thursday, Fed assured that they will do whatever they can do to sustain the economy, which is hurt by the pandemic but Fed said that they would not be going to fund fiscal activities directly.
Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey said that the Fed will stay with the market expectations. It is very difficult for the Fed to insert the money at this time in the given scenario when we are still waiting for a clear election result.
Its looks like Biden will take the presidency from Trump but Senate will remain under Republican control which is easing investor’s worries about the tighter regulations and increase in corporate taxes.
Volume on U.S. exchanges reached to 10.42 billion shares. The S&P 500 increased over 7% so far in this week. The Dow Jones Industrial Average rose 1.95% while the S&P 500 gained 1.95%. The Nasdaq Composite climbed 2.59%. Since the election day on Tuesday, Facebook shares jumped 11% while S&P 500 went up by 4%. Due to less risk of an antitrust enquiry
Qualcomm Inc gains 13% after the forecast announcement for the first fiscal quarter revenue and predicting solid growth in 5G sales next year.